Bill > A02155

This bill proposes significant amendments to the state constitution's debt contracting provisions, establishing more stringent rules and limitations for state borrowing. Specifically, the bill prohibits the state from entering into financing arrangements that would indirectly support debt payments for state agencies, municipalities, or other entities, regardless of whether such obligations are subject to appropriation. The bill creates a new framework for state debt, allowing two primary methods of debt contraction: first, debt secured by full faith and credit of the state for specific capital works that must be approved by voter referendum, and second, debt secured by specific state revenues. The bill also introduces a complex set of limitations on debt issuance, including an annual cap of 35% of total capital works, which can be increased to 50% during years of significant revenue decline, with a graduated reduction in subsequent years. Additionally, the bill mandates that debt can only be contracted for capital works, prohibits certain indirect financial arrangements, and provides provisions for refunding existing debt. The amendment will be referred to the next legislative session after the upcoming general election and must be publicly published for three months prior to that election, in accordance with constitutional procedures.

Budget and Finance, Justice

https://www.nysenate.gov/legislation/bills/2025/A2155